GBP/USD tests session highs near 1.3240 on PMI

The British Pound has accelerated the upside today, now lifting GBP/USD to the upper end of the range near 1.3240.

GBP/USD bid post-PMI

Cable met extra buying pressure after the key UK’s services PMI rose above expectations to 53.8 for the month of July, bettering as well June’s 53.4 reading.

In the meantime, the pair is up for the second consecutive session so far today, trading at shouting distance from yesterday’s YTD tops at 1.3250.

Spot has been buoyant since the recent breakout of 1.3200 the figure, always on the back of the persistent weakness surrounding the greenback and against the backdrop of a vacuum of headlines from the domestic scenario.

Ahead in the session, GBP should remain under pressure in light of the BoE meeting. In this regard, strategists at TD Securities noted “We think that June was probably peak hawkishness for the MPC after a series of upside inflation surprises largely reversed in July. With little chance of a rate hike this week, we think that the market reaction to the BoE decision will depend on the result of the vote and the changes to the macro forecasts”, commented the strategists.

GBP/USD levels to consider

As of writing the pair is up 0.17% at 1.3245 facing the immediate hurdle at 1.3250 (2017 high Aug.2) followed by 1.3351 (high Sep.12 2016) and finally 1.3447 (high Sep.6 2016). On the other hand, a breach of 1.3188 (low Aug.1) would open the door to 1.3124 (10-day sma) and finally 1.3094 (23.6% Fibo of 1.2587-1.3250).

In addition, Cable is near overbought levels at 67 when gauged by the daily RSI (14), while the MACD stays on the bullish side for the time being.